11800-11807

WATER CODE
SECTION 11800-11807




11800.  Money required to meet the costs of construction of the
project and all expenses and costs incidental thereto and to meet the
costs of operating and maintaining and making necessary replacements
thereto shall be paid by the State Treasurer from the proper fund
upon demand of the department. Payments shall be made after audit in
the manner provided by law and upon warrants drawn by the State
Controller.



11801.  All interest received or earned on money deposited in a fund
provided for in this part shall be credited to and become a part of
the particular fund upon which the interest accrues.



11802.  The proceedings authorizing the issuance of bonds may
contain appropriate provisions governing the use and application of
bond proceeds and revenues for the purposes specified in this part.



11803.  The department may provide in the proceedings authorizing
the issuance of bonds or may otherwise agree with the purchasers of
bonds regarding the deposit of all money constituting the
construction fund, and the revenue fund and may also provide for the
deposit of such money at such times and with such depositaries or
paying agents and upon the furnishing of such security as may meet
with the approval of the purchasers of the bonds.



11804.  The depositaries and security provided for or agreed upon
shall be qualified and eligible in accordance with the requirements
of law.


11805.  Notwithstanding anything contained in this part, the
proceeds received from the sale of bonds and the revenues received
from the operation of the project may be used to defray any expenses
incurred by the department in connection with and incidental to the
issuance and sale of bonds for the construction of the project,
including expenses for the preparation of surveys, plans, and
estimates and the making of inspections and examinations required by
the purchasers of bonds.



11806.  The amounts required to be transferred by the State
Treasurer as provided in this part shall be ascertained and computed
by the department and the certificate of the department is conclusive
and binding upon the State Treasurer.


11807.  When the department, with the concurrence of the Department
of Finance, deems it in the best interests of the state, it may
authorize the State Treasurer, upon such terms and conditions as may
be fixed by the department, to issue notes, in the manner prescribed
by this section, maturing within a period not to exceed five years,
payable from revenues received from the operation of the project or
from federal reimbursements received under the National Disaster Act,
or both. Notes authorized to be issued shall be issued at public
sale on a competitive-bid basis upon such notice as the State
Treasurer may deem advisable, except that if no bids are received or
if such bids are not satisfactory to the State Treasurer, such notes
may be issued on a negotiated-bid basis. The proceeds from the sale
of such notes shall be used only for the purpose of providing funds
for emergency repairs to the project necessitated by natural
disasters.
   All notes issued and any renewals thereof shall be payable at a
fixed time, solely from revenues received from the operation of the
project or from federal reimbursements received under the National
Disaster Act, or both, and not otherwise, except that in the event
that sufficient revenues or reimbursements, or both, are not received
prior to the maturity of the notes, the State Treasurer shall, in
order to meet the notes then maturing, issue renewal notes for such
purpose.
   Every note and any renewal thereof shall be payable from revenues
received from the operation of the project or from federal
reimbursements received under the National Disaster Act, or both, and
not otherwise. The total amount of such notes or renewals thereof
issued and outstanding shall at no time exceed anticipated revenues
from the operation of the project or federal reimbursements under the
National Disaster Act, or both, to be received during the following
two years.